Tax collected at the stage of detention can be claimed as GST refund if excess tax is paid in regular returns

Last updated: 25 March 2025

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The Madras High Court has ruled that if tax was paid at the detention stage under Section 129 of the CGST Act, and subsequently excess tax was paid in regular GST returns (Form GSTR-3B), the taxpayer is entitled to claim a refund for that excess amount. The court dismissed petitions challenging a circular that had caused confusion, clarifying that tax should not be levied twice.

Court :
Madras High Court

Brief :
The Hon'ble Madras High Court in M/s Chetna Steel Tubes (P.) Ltd. v. Goods and Service Tax Network (GSTN), New Delhi [Writ Petition Nos. 19976 & 19977 of 2021 dated August 08, 2024] dismissed the writ petitions challenging a circular that directed tax liability creation under Section 129 of the Central Goods and Services Tax Act, 2017 ("the CGST Act") and held that tax collected at the detention stage can be claimed as a refund if excess tax is paid in regular returns.

Citation :
Writ Petition Nos. 19976 & 19977 of 2021 dated August 08, 2024

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1999

(Excl. of GST ₹359)

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Judgement posted by

Bimal Jain

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FCA, FCS LLB with21 Yrs of Experience inTaxation Indirect and Direct: Education Qualification: B.Com (Hons) Chartered Accountants Company Secretary LLB Qualified SAP FI/CO Consultants Professional Membership: Chairmanof Indirect Tax Committee of PHD Chamber of Commerce Member of Indirec ... Read more

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